Weyerhaeuser Q4 2021 Earnings Report
Key Takeaways
Weyerhaeuser reported fourth quarter net earnings of $416 million, or 55 cents per diluted share, on net sales of $2.2 billion. Excluding a total after-tax benefit of $49 million for special items, the company reported fourth quarter net earnings of $367 million, or 49 cents per diluted share. Adjusted EBITDA for the fourth quarter of 2021 was $674 million.
Achieved record full year net earnings of $2.6 billion, or $3.47 per diluted share
Increased full year Adjusted EBITDA by 86 percent to a record $4.1 billion
Generated record full year cash flow from operations of $3.2 billion and Adjusted FAD of $2.6 billion
Delivering total cash return to shareholders of more than $2 billion based on 2021 results
Weyerhaeuser
Weyerhaeuser
Weyerhaeuser Revenue by Segment
Forward Guidance
Weyerhaeuser anticipates first quarter earnings and Adjusted EBITDA will be significantly higher than the fourth quarter.
Positive Outlook
- In the West, the company expects significantly higher domestic sales realizations and fee harvest volumes, moderately higher export sales realizations, and seasonally lower forestry and road costs.
- Engineered wood products sales volumes are expected to be higher with comparable sales realizations.
- For lumber, the company expects moderately higher log costs and slightly lower sales volumes, partially offset by improved unit manufacturing costs.
- The company expects modestly higher sales volumes for oriented strand board, partially offset by moderately higher fiber costs.
- In the South, the company expects comparable sales realizations and seasonally lower forestry and road costs.
Challenges Ahead
- Earnings and Adjusted EBITDA decreased from the third quarter due to lower real estate sales.
- Sales volumes were significantly lower than the third quarter for lumber and slightly lower for oriented strand board, largely due to weather-related transportation challenges in Canada.
- Fourth quarter results include an adjustment to our self-insurance accruals, primarily due to elevated medical claims activity.
- Sales realizations for lumber increased by 15 percent compared with the third quarter average, which was more than offset by a 29 percent decrease for oriented strand board.
- In the South, the company expects slightly higher per unit log and haul costs and slightly lower fee harvest volumes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income